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Fxkart.com, an online aggregator of authorised foreign exchange dealers, is set to raise $5 million in Series A funding in three months, the company’s CEO Abdul Hadi Shaikh said.
“We are in active talks to raise money, which will be used for improving the product, increase dealer participation, and marketing,” Shaikh told BusinessLine .
The company had received $2 million in seed funding from its founder Mushtaq Shah and strategic advisor Faraz Naqvi in March last year.
The Bengaluru-based start-up allows consumers to compare what’s on offer from forex dealers across the city. The dealers can then offer competitive rates.
The portal lists several money changers and the customer can search for a rate. The requirement is passed on in real time to the dealers. The consumer can then opt for the dealer based on his location, rate and convenience.
“The travel market was growing even during times of recession. International airlines are applying for more seats as they feel the market is growing here. About 18 million people travelled overseas last year. So, the potential is huge,” said Shaikh.
The portal, which has 200 dealers listed at present, sees 1,000 transactions a month with an average transaction size of $1,000. “Most transactions are by Indians travelling overseas but after perfecting our model, we will also look to target overseas travellers by next year,” added Shaikh.
Helping dealersDealers can use the platform to reach a large number of clients. “Since this is a low-margin, high-volume game, it helps small money changers save on marketing spends,” he said.
Going forward, the company is looking at increasing dealer participation, apart from smoothening certain regulatory and process bottlenecks for better customer experience. While it is currently dealing with forex transactions, Shaikh said the company could explore the option of providing data to third parties as well.
“As an aggregator, we have access to a lot of data on travellers that can be used by marketing and insurance companies. Ultimately, we want to be the Uber of foreign exchange.”
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